lowers credit score

In fact debt consolidation has positive effects on your credit score. How? Let me give many of your answers through FAQ regarding debt consolidation: -
Q: -If I consolidate debt then does it enter my credit report?
A: - Quote:

A comment stating that you're paying an account through a credit-counseling agency appears on your credit report.

Q: -How long does it remain in my CR?
A: - Quote:

It remains until the account is paid in full.

Q: -Does it have any negative effect on my credit score?
A: -Quote:

Since 1999, Fair Isaac Corp. has ignored any credit-counseling information when calculating a consumer's credit score.

In fact it'll have positive effect on credit score. As you start paying off your debt through debt consolidation, your credit score starts improving. But please make it sure that you don't miss a single payment schedule when you're consolidating debt because a single non payment may hamper your credit score severely.

Q: -Can I qualify for new credit?
A: -Quote:

It may make it difficult to qualify for new credit.

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To know more about the benefits of Debt Consolidation please go through the following article: -
Benefits of Debt Consolidation